Madoff

Bernard Madoff is out on us$10m bail. He's confined to his us$7m flat in Manhattan's silk stocking district. He's bilked his investors of us$50bn, yet for all intents and purposes, he is a free man living in the luxury he is used to. Why isn't he in prison orange and in Riker's island sharing the life of an ordinary felon? Well, as F. Scott Fitzgerald famously wrote, the rich are different.
Madoff is 70. He's shouldering full blame for his Ponzi scheme, thereby trying to save his two sons, daughter, and brother from criminal pursuit. Nobel? Hardly!
He got away with it as he boasted, he could make money when the market was up or down but not when it went flatter than a pancake. It did...at the very moment he was looking for foreign suckers to sustain his pyramid scheme. Now, the slow wheels of justice are churning as government officials look into feeder funds and accounting firms and other 'louche' arrangements which allowed Madoff & co. to bilk his clients from day one.
Madoff won't find much cheer among his fellow Jews, whom he robbed gladly...Yeshiva University, Steven Spielberg's Wunderkind foundation, and the Eli Weisel Fund, among others. They entrusted endowments which overtime grew steadily so that they could expand charitable work, it seems, but wisely kept private money away from Madoff's greedy mitts. Madoff fooled large banks...Bank of Scotland, France's BNP, HSBC...not to mention the wealthy and comfortable who now are hurting badly in the autumn of their lifetime.
It is doubtful Madoff will see much prison time. But that is the affair of justice and a jury of his peers.
His machination had the complicity of the greedy but also of a mindset who thought the market itself could regulate foul play. It didn't. So new laws and older statutes will be better observed perhaps, but they won't stop those always looking for the golden ring of making a buck and quick. Nonetheless, harsh measures are called for; hardly a cent will be recovered, but Madoff & his kind especially his close confederates and those at the feeders fund deserve long terms in prison.

North Korea Idiotic?

Before the movers and shakers of the Council of Foreign Relations, US secretary of state Condolezza Rice opined that 'only "an idiot" would trust North Korean promises that it abandoned its nuclear programmes". Well, blimey! Then why did Mme. Rice reverse course as Bush's secretary of state, in her boss' second term, and begin negotiating with Pyongyang? Well, Bush's play hardball diplomacy splatted egg on Bush's face after 4 years of name calling and boasts of bringing about regime change in North Korea. Bush & co. had to eat crow for its obtuseness ushered Pyongyang into the world's nuclear club! Then did serious negotations of a sort began. So who's idiotic? And can you trust Washington, a North Korean wag may ask?

Small mercies

Winter Soltice...Christmas...Yuletide...call it what you will...soon the nightmare of 8 years of George Bush and his gang of the corrupt and the wicked will fade from the scene. Still, they leave behind not only a country on the abyss of ruin but the world clouded by uncertainty and war and millions of lives shattered. Should we be thankful? In a way, yes...the grinch that stole our well being and hopes is going to the smug, iron gated community in Dallas, Texas...he goes to pal out with the rich, the lazy, and those descended from the robber barons, the hucksters, and the people who crush small people owing to the sharp, questionable practices they use to get ahead. Thankful no...for Bush & co. have left behind a dung heap to clean up and hardship for the younger generations who will lead mean lives. Thankful, yes, for as the English saw twangs: Good bye to bad rubbish!

Every day has its day!

Yes, every dog does have his day! And US president George Bush has had his at his press conference in the Green Zone in Baghdad, Iraq. A 29 year old reporter Muntader Al Zaidi threw his two shoes at Mr. Bush's head. The 62 year old president proved nimble enough to duck, but he couldn't escape the contempt of Al Zaidi's gesture. It was says the young reporter a farewell kiss to the man whose pre emptive war, based on lies and false reports, that have brought untold death and destruction on Iraq. Al Zaidi's gesture is an Arab way of showing complete disrespect and contempt, aimed as it was at Mr. Bush's head. What's more Al Zaidi spat out 'dog', which is the lowliest of the low in the Arab way of classifying animals. Al Zaidi badly bruised with broken bones is in Iraqi military hands, and will no doubt spend some hard time in prison. Mr. Bush will never live down the shame, no matter what smiling face he will put on it; Al Zaidi's two shoes will haunt him in retirement and follow him to his grave. A fitting judgment!

Every dog has its day!

Yes, every dog does have his day! And US president George Bush has had his at his press conference in the Green Zone in Baghdad, Iraq. A 29 year old reporter Muntader Al Zaidi threw his two shoes at Mr. Bush's head. The 62 year old president proved nimble enough to duck, but he couldn't escape the contempt of Al Zaidi's gesture. It was says the young reporter a farewell kiss to the man whose pre emptive war, based on lies and false reports, that have brought untold death and destruction on Iraq. Al Zaidi's gesture is an Arab way of showing complete disrespect and contempt, aimed as it was at Mr. Bush's head. What's more Al Zaidi spat out 'dog', which is the lowliest of the low in the Arab way of classifying animals. Al Zaidi badly bruised with broken bones is in Iraqi military hands, and will no doubt spend some hard time in prison. Mr. Bush will never live down the shame, no matter what smiling face he will put on it; Al Zaidi's two shoes will haunt him in retirement and follow him to his grave. A fitting judgment!

If a Ford worker is earning us$73 an hour, how much does a manager earn?

Chances are the US congress will after negotiation give Detriot the bridge loan that the US auto industry is seeking, to ease their cash flow. The talking heads and the media are more or less drumming the same tattoo: the worker is to largely blame for the sad state of affairs that Detriot is in. He earns too much. Let her take a good cut in pay, in order to make the US auto industry more competitive. Look at Nissan, Toyoda, Hyundai, and other foreign car makers the workers of whom earn half of what a Detriot worker does. Why? the unions. Nissan et al. put plants in the South, in anti union states, for the simple reason that they can play workers less. So, largely writ, the attack on the unions and the so called high paying worker is a smoke screen to let off the hook an inefficient, highly paid bloated management. It seems as though today in the US, management is sacrosanct, but the ordinary union gal or guy isn't. He's greedy whilst management are saints. What a laugh. What has happened to the idea that the higher up the chain of command you go, the more responsable you are for what happens to a company's fortune? Apparently, that thought doesn't enter the calculus of blame. And how much do management earn? Well high multies of 10's, 50's, 100's 400's than the ordinary Jane or Joe on the assembly line. And if times are tough the union member tightens his belt, whilst management continues its high standard of living with full medical and other social benefits. Good year, bad year, management enjoys the good life. It's time to hold management's feet to the fire and let them share the lion's share of blame and sacrifice which hardly will make up for the hardship of the ordinary worker and a worker who is a union member. It's not the union member that should worry so much the banks and government but management who is let off the hook and continue a style of living which is condemnable on all points of the compass.

The New York Times borrows almost a quarter billion dollars

In these parlous economic times, the old grey lady 'The New York Times' announced that it is going to borrow us$225 million against its new headquarters, designed by the well known architect Renzo Piano. A state of the art glass building of 52 floors had made news around the world by daredevils who climbed its ventian blind like slats to the building's pinnacle. It now comes to light that the NYT owns 58 per cent of the building or some 1,5 million square feet, and the developer Forest City Ratner owns the rest. Lately S&P have lowered the credit worthiness of the NYT, and a revolving line of credit is coming to its term. So, given the downturn in the print medium, the old grey lady is strapped for cash. In consequent, since it has its money tied up in the building, to easy its cash flow, the NYT is borrowing almost a quarter billion dollars against this asset. And this very well may be the first step towards increasing debt against its headquarters.

General Shinseki

President elect Obama has chosen another member of his cabinet. This time to fill the post of secretary of veteran affairs. He has chosen wisely. He is going to nominated 4 star general Shinseki whom the much disgraced Donald Rumsfeld and Paul Wolfowitz dismissed as being out of touch in fighting wars. General Shinseki rightly called the need of several hundred thousands of troops in Iraq after the overthrow of Saddam Hussein. He was spot on when he spoke of ethnic and religious tensions which neither Mr. Bush nor his camp followers gave a second thought. With general Shinseki in the cabinet veterans will be given a fair shake...not the pitiful treatment they are getting...remember the scandal at Walter Reed hospital! It is a signal from Mr. Obama that a big broom is sweeping over business as usual in Washington. If anyone had any doubts, the naming of the octagenarian Paul Volker as head of Mr. Obama economic council would have told any thinking person that!

Mugabe must go!

It is not without a certain sense of irony now to hear African leaders begin raising their voices calling for Mugabe of Zimbabwe to step down...to go away. It is long evident that Mr. Mugabe had ascended to the ranks of the meglomanic, but nary a word was raised for his removal from office outside of his own country. In Zimbabwe, Mr. Mugabe has done everything that he could to emasculate the opposition by any means possible. Yet despite his meanest efforts, the opposition fights on. Outside Zimbabwe, even South Africa's Tabo Mbeki had the squeak of a mouse in trying to square Mr. Mugabe's circle. For, Mr. Mugabe was calling in his chits, supporting as he did South Africa's ANC in its long struggle against apartheid; he skilfully played his anti colonists cards to shame other African leaders to put a damper on any criticism of him and his iron fisted rule. Now, it seems the fear of the dreaded cholera has put the fire of fear across southern and eastern Africa; for that horrid and lethal disease knows no boundry. Furthermore, Kenya's leader has put out a call to raise any army of African states if Mr. Mugabe does not resign from power, to invade and remove him manu militari. Something that they sneezed at when it came to Sudan's war in Dafur. Mugabe won't go, and unless his praetorian guard engineer a coup there is little that the feckless leaders in Africa can do.

City of the Patriarchs

City of the Patriarchs. Hebron. Judaism, Christianity, and Islam acknowledge its sacredness. For the unschooled, read the first book of the Bible, Genesis. Since 1967Hebron is under Israeli occupation. Today, 180.000 Palestinian Arabs live in fear, because with the might of the Israeli military, 680 militant, orthodox Jews walk in the arrogance of self righteousness and conquest. They carry guys; attack Arabs; and try with some success to occupy property of theirs. For the 680, sweeping aside millenia, Hebron belongs to the biblical Judea under a perscribed guide of Jewish law which they wish to reclaim in the same vein as Islamic terrorist dream of re establishing the califate under the rule of Sha'ariah. For them, Hebron is 'Eretz Israel', the earth and soul of a Zionist state, which international law does not subscribe to. Yet, the gang of 680 extremists are sustained by millions of US dollars raised abroad, and particularly in the US, by the little known Hebron Fund. The fund's website says it raised funds for Hebron, Israel, no more, no less. These very monies go to sustain extremism and messianism, grandly protected by the might of the Israeli state through its army. The gang of 680 religious fanatics strut through Hebron, acting with open racism and impunity, in ways reminiscent of storm troopers and colonial armies of the past. A question arises: is the Hebron Fund aiding Israeli terrorism? This is a legal matter that Washington has to parse.

Dr Lee Jae Oh

Dr Lee Jae Oh's name deserves little household recognition outside of South Korea. Presently he is in the US on a visa which expires in May 2009 and holds the rank of senior visity scholar of the US Korea Institute at John Hopins University. Dr. Lee is the man who engineered the election of Mr. Lee Myung bak first as mayor of Seoul, and then as president of the Republic of Korea [ROK or South Korea]. Yet, Mr. Lee has not appointed Dr. Lee to any high post in his administration. Today [4 December 2008] New York's Korea Society rolled out the red carpet for Dr. Lee to talk of the role of president Lee Myung bak's administration. Which implies that Dr. Lee is in bad odour in Seoul since after the landslide election of president Lee, his campaign leader is sitting safely in Washington, DC. Dr. Lee faced a packed room of the South Korean press and the 'grattin' of Korea watchers in finance, the academy, business, the military and the diplomatic corps, and American Koreans. He approached his topic obliquely, talking of instituting a nation of 'the righteous', to eradicate corruption and open opportunities for all South Korea's to work hard to prove themselves as good, upright citizens. His call is right out of Korea's history of reformers, and with echoes of Jean Calvin's city of saints, Geneva. He then proceeded to talk of his trips to Peru, Brazil, among other countries in Latin America, but remained silent on his stay in Cuba. [There did he meet with North Koreans?] Furthermore, Dr. Oh is cut from the same wood as Confucianism, and his comments on the useless of a mountain in Rio which from the tope you see unfold before your eyes the splendour that is Rio de Janeiro. Yet, in the same vain, he doesn't see the ressemble with Mount Kumgang in North Korea to which South Koreans rush to visit. But that is his cultural blindness. His views on North Korea are firm the more especially since Pyongyang won't acknowledge the killing of a tourist in May at Mount Kumgang who strayed towards a military post. Nonetheless, he did go out of his way to stress that president Lee's approach towards Pyongyang is non threatening and peaceful. Dr. Lee said little about the US other than to reiterate that it is time for Washington to ratify the Korea FTA [which Mr. Obama and Mrs. Clinton expressed in the past little enthusiasm for a free trade agreement with the ROK]. But the import of Dr. Lee's talk was his sincerest apology to president Lee. Obviously, he wants to come back to South Korea, but his return remains unsure, the more especially since he is favourable towards Mme. Park Guen hae, former president Park Chung Hee's daughter who is president Lee's rival. Did Dr. Lee express full repentence to the Korean press who will deliver his message on Seoul's airways, it is too early to tell.

US recession year 2

Yesterday [01 December 2008], the NYSE lost almost 700 points or 9 per cent in value. News that the US has been in recession since December 2007 caught everyone unaware. Well...many...not all...Some voices had been raised saying that the economic verities of the day had gone haywire, and that the country had slipped into recession. But the old shaggy heads shook it off hiding behind the dry textbook definition that it was too soon to come to that determination. After the failure of Bear Stearns, the old guard thought, they had saved the day. They didn't, and from there the situation went from bad to worse, and them from worse to worser. The US Treasury, the Fed, and the economic advisors and conventional economists tinkered with this and that but after the government let Lehman Brothers fail...it was difficult to believe that the economic establishment thought the spector of recession didn't hover over the global market. It did! Now, the truth is out. It had been swept under the rug until the dirt accumulated into a small Himalaya, it could no longer be denied. And now we know, what we all knew or suspected, we're in a deep and growing recession, bordering on depression. Which raises the question about collusion between the Treasury, the Fed, and the monied and corporate class to preach denial. And denial they did preach. And they bought time till after the US elections, and left the mess for someone else to clean up! So we may soon see a mighty broom sweep out old theories and practices, and hunker down to get a failing economy working again.